Cash Flow

Definition

Cash flows are the monies received and paid out that are associated with a project per period, including the initial investment,[1] or more simply, the movement of cash into and out of the business. Where the “inflows” (receipts) have exceeded the “out-flows” (disbursements) in a specified period of time, the cash flow is said to be positive and provides additional net cash.

When the disbursements exceed the receipts in a specified period of time, the cash flow is said to be negative and reduces net cash.[2]